Tax credits stopped: "Info does not show trade/profession/vocation regular/organised?

mongoose11

MsBlonde wrote: »

I'm kinda in the same boat, however only just attempted to claim WTC

I am self employed but have a 30 hour contract per week for a company, who doesn't want me on PAYE.
I also do freelance work
Sell on ebay and my own website.

HMRC have sent me a tax credit examination form before even looking at my claim, but after reading this post... I probably will be rejected too.

Only difference is i'm earning over minimum wage at 30+ hours a week.

I think you should check out this business plan as it might help your cause.

http://www.bplans.co.uk/educational_website_business_plan/executive_summary_fc.cfm

If earning over NMW but are building a business, then maybe you will qualify.

The more I learn about this the more it appears you can demonstrate you strive for the egoic mind the more the tories like you

HoneyNutLoop

mongoose11 wrote: »

I teach roughly 6 students a day. At the end of the day I go over the days class, prepare to summary of it to present to the following days class then go through the following days class and prepare the lesson plan.

That's roughly 20 mins each per student.

Looking at the monetary figures you posted earlier, you were paid for between 74 and 78 hours each month for "class time". This equates to around 17 to 18 hours per week class time, rather than the 25-30 hours you've estimated at post 6.

If you were teaching 6 students a day 5 days a week during those months, it would appear you teach each student for around 35 minutes, which makes your non-remunerated prep time of 20 mins per student very high.

Even taking that prep time into account, this would bring your average hours over those three months to between 27-28 a week, which is below the 30 hour minimum.

MsBlonde

mongoose11 wrote: »

I think you should check out this business plan as it might help your cause.

http://www.bplans.co.uk/educational_website_business_plan/executive_summary_fc.cfm

If earning over NMW but are building a business, then maybe you will qualify.

The more I learn about this the more it appears you can demonstrate you strive for the egoic mind the more the tories like you

Yeah but how do you go about making a business plan for a 12 month contract of working for someone else for 30+ hours a week... I work mon-sun whenever I want. Can be 9am or can be 1am.

I didn't want go self employed, but it was a job... and thats what I had to do.

mongoose11

MsBlonde wrote: »

Yeah but how do you go about making a business plan for a 12 month contract of working for someone else for 30+ hours a week... I work mon-sun whenever I want. Can be 9am or can be 1am.

I didn't want go self employed, but it was a job... and thats what I had to do.

You mentioned you did stuff on ebay plus online marketing, I was referring to the online marketing re the biz plan.

mongoose11

HoneyNutLoop wrote: »

Looking at the monetary figures you posted earlier, you were paid for between 74 and 78 hours each month for "class time". This equates to around 17 to 18 hours per week class time, rather than the 25-30 hours you've estimated at post 6.

If you were teaching 6 students a day 5 days a week during those months, it would appear you teach each student for around 35 minutes, which makes your non-remunerated prep time of 20 mins per student very high.

Even taking that prep time into account, this would bring your average hours over those three months to between 27-28 a week, which is below the 30 hour minimum.

You are correct in asserting that some classes are not always 1hr but sometimes 40/30 or 20 mins.

There are also on the day cancellations - the nature of the work.

I get up before 6am finish teaching around 2/3pm and round off around 4/5pm.

That was how it worked for the months that were requested.

Mersey_2

Darksparkle wrote: »

Personally no I don't think you qualify. You claimed on the basis that you are running a business, I don't believe it sounds like you are. If you disagree and believe you are genuinely running a business then you should appeal as suggested by Mersey. I can only comment based on what you have said here, obviously with actual evidence in front of me I'd maybe think differently.

If you were in fact employed and claimed as such, you still wouldn't qualify because your earnings would need to be at least NMW for at least 30hrs per week, you currently only average 18hrs.

You'd need to earn at least £871 per month (roughly $1212).

HMRC have accepted the OP is running a trade or profession - otherwise they would have listed that as a reason too.


I'm sure you didn't mean to put it that way, re NMW as it's just wrong. [Although I understand why the Compliance team have used it as a quick way to check questionable claims]


If eg every single full-time claimant earned NMW c£12k pa, they wouldn't need to claim WTCs.


Profit isn't the qualifying criteria - it's hours worked; whether a trade/profession; whether it's carried out with a view to profit and is regular and commercial.


Although I realise a lot of HMRC staff are mistakenly just dividing £ by hours worked and if its below £7/hr as a shortcut and therefore then saying that means a claimant doesn't qualify for other reasons.


From what I gather it's a particular problem in Preston and Blackpool offices. I can't say much more on here, as a Welfare law expert on rightsnet has taken it up with HMRC & the DWP nationally - both have a group which responds to errors in practice - as it appears to be a training/direction issue respectively with WTCs & UC respectively, as all of these letters seemed to go out in December 2015 and last month.

Mersey_2

mongoose11 wrote: »

Thanks again.

I haven't disclosed everything here but for the 3 months of info they requested.

I have one more question though if that's good.

I am in the process of building an affiliate website in the mens health niche, whereby I will earn affiliate commissions from products which I don't stock. Right now I have yet to make an affiliate sale but this is something I do late in the evenings.

I see on the gov.uk that if your weekly wage is below NMW then you may be required to send a business plan.

I came across this example which is very close to what I do - this guy is slowly growing a content based website that initially starts off just garnering traffic and then slowly building a list and recommending products that fall into his niche.

http://www.bplans.co.uk/educational_website_business_plan/executive_summary_fc.cfm

Do you think this is something I should mention I do as well?

A whois will clarify it's my site.

Yes, it's usual for claimants to take some things for granted. Whereas you need to explain everything you do and have done in preparation. Remember, the HMRC employee reading your letter and enclosures doesn't know anything about you or your business.


Print out domain names registration confirmation emails - these also count as expenses. Record date(s) the domain(s) need renewing etc, as well as annual hosting fees.


If you're working from home, there's also the £26pcm automatic expense (though you can calculate pro rata electricity, mobile phone bills etc).


List time engaged on mobile 'phone calls and pcm cost; internet/Skype usage to work and promote the business. Google ads, social media printouts all help. Even an A4 pad, postage count as expenses and are often forgotten. But all add to evidence of hours' worked each week, as well as preparation in expanding your business.

Darksparkle

Mersey wrote: »

HMRC have accepted the OP is running a trade or profession - otherwise they would have listed that as a reason too.


I'm sure you didn't mean to put it that way, re NMW as it's just wrong. [Although I understand why the Compliance team have used it as a quick way to check questionable claims]


If eg every single full-time claimant earned NMW c£12k pa, they wouldn't need to claim WTCs.


Profit isn't the qualifying criteria - it's hours worked; whether a trade/profession; whether it's carried out with a view to profit and is regular and commercial.


Although I realise a lot of HMRC staff are mistakenly just dividing £ by hours worked and if its below £7/hr as a shortcut and therefore then saying that means a claimant doesn't qualify for other reasons.


From what I gather it's a particular problem in Preston and Blackpool offices. I can't say much more on here, as a Welfare law expert on rightsnet has taken it up with HMRC & the DWP nationally - both have a group which responds to errors in practice - as it appears to be a training/direction issue respectively with WTCs & UC respectively, as all of these letters seemed to go out in December 2015 and last month.

If you read my posts again, I said if considered employed it wouldn't meet NMW for 30hrs.

It also wouldn't be £12,000 it would be £10,452 (£871x12) which is still within the tax credit limit for WTC for a single person (without children or disabilities).

Mersey_2

Understood. Thanks. I think I must have used the April 2016 (National Minimum/Living Wage) hourly rate re those on NMW not having to pay any income tax due to the personal allowance increase. But I realise GO abandoned most of his WTC proposed cuts for April. [I think just the Work Allowance cut in UC is going ahead]

mongoose11

Mersey wrote: »

Yes, it's usual for claimants to take some things for granted. Whereas you need to explain everything you do and have done in preparation. Remember, the HMRC employee reading your letter and enclosures doesn't know anything about you or your business.


Print out domain names registration confirmation emails - these also count as expenses. Record date(s) the domain(s) need renewing etc, as well as annual hosting fees.


If you're working from home, there's also the £26pcm automatic expense (though you can calculate pro rata electricity, mobile phone bills etc).


List time engaged on mobile 'phone calls and pcm cost; internet/Skype usage to work and promote the business. Google ads, social media printouts all help. Even an A4 pad, postage count as expenses and are often forgotten. But all add to evidence of hours' worked each week, as well as preparation in expanding your business.

That's Fantastic.

Thanks so much for getting back to me on that one. Wasn't sure whether it was in my best interest to disclose or not.

It would be in my and the HMRC's best interest to forward a business plan as it's yet to make any coin I'm assuming.

What you explain makes perfect sense upon digesting. I was assuming that the proof of costs (I forget the exact term) that HMRC were requiring me to send in were the costs incurred with running the business - not overall costs of living as you state i.e phone/electric as I work from home as you summarize.

Very grateful, cheers.